Hedgeye's Retail teamhas been agnostic on Michael Kors (KORS) since we issued a Blackbook on the stock back in March. However, based on yesterday’s +16.4% rip in the stock, we can no longer stand on the sidelines. We are deeming KORS an unshortable stock. This company is golden.
At $49 a share, some might call KORS expensive. We call that poppycock. This company is on fire. Strong numbers all around, P&L is on fire, and the company is ripping market share from competitors, including Coach (COH), which we continue to remain bearish on. Check out the growth in KORS versus COH below:
The story for 2013 remains positive for KORS. This is one of the few companies that has strong European growth on top of US growth – a rarity in this day and age. While we like KORS, we’d still rather buy Fifth & Pacific (FNP).
